CBSE 2025, Set 2

Question

(a) X, Y and Z were partners in a firm sharing profits in the ratio of 5:3:2. X guaranteed that Z's share of profit will not be less than ₹ 50,000 in any year. The firm earned a profit of ₹ 1,50,000 for the year ended 31st March, 2024.

Prepare Profit and Loss Appropriation Account for the year ended 31st March, 2024.

Edvaya · Accepted Answer

The correct answer is Subjective. **Profit and Loss Appropriation Account** For the year ended 31st March, 2024 | Dr. Particulars | Amount (₹) | Cr. Particulars | Amount (₹) | |---|---|---|---| | To Profit Transferred to: | | By Profit and Loss A/c | 1,50,000 | | X's Capital A/c (75,000 - 20,000*) | 55,000 | | | | Y's Capital A/c | 45,000 | | | | Z's Capital A/c (30,000 + 20,000*) | 50,000 | | | | **Total** | **1,50,000** | **Total** | **1,50,000** | *Working Note:* Distribution of ₹ 1,50,000 in 5:3:2 ratio: X = 75,000; Y = 45,000; Z = 30,000. Guaranteed amount to Z = 50,000. Deficiency for Z = 50,000 - 30,000 = 20,000. This is to be borne exclusively by X.

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Accountancy > Accounting For Partnership Firms > Fundamentals Of Partnership

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